January 13, 2004, read first time and referred to Committee on Ways and Means.

Introduced

Second Regular Session 113th General Assembly (2004)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in thisstyletype.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or thisstyletype reconciles conflicts
between statutes enacted by the 2003 Regular Session of the General Assembly.

HOUSE BILL No. 1085

A BILL FOR AN ACT to amend the Indiana Code concerning
health.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-2.5-1-22.5; (04)IN1085.1.1. -->
SECTION 1. IC 6-2.5-1-22.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 22.5. (a) "Nonprescription drug"
means a nonnarcotic medicine or a drug that is:
(1) sold without a prescription;
(2) prepackaged for use by the consumer;
(3) prepared by the manufacturer or producer for use by the
consumer;
(4) properly labeled; and
(5) unadulterated;
under requirements of the state and federal governments.
(b) The term does not include herbal products, dietary
supplements, botanical extracts, or vitamins.

SOURCE: IC 6-2.5-5-39; (04)IN1085.1.2. -->
SECTION 2. IC 6-2.5-5-39 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]: Sec. 39. Sales of nonprescription drugs are exempt from
the state gross retail tax.

SOURCE: IC 25-26-20; (04)IN1085.1.3. -->
SECTION 3. IC 25-26-20 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]:
Chapter 20. Regional Drug Repository Program
Sec. 1. The definitions in IC 25-26-13-2 apply throughout this
chapter.
Sec. 2. As used in this chapter, "nonprofit health clinic" means
the following:
(1) A federally qualified health center (as defined in 42 U.S.C.
1396d(l)(2)(B)).
(2) A rural health clinic (as defined in 42 U.S.C. 1396d(l)(1)).
(3) A nonprofit health clinic that provides medical care to
patients who are indigent, uninsured, or underinsured.
Sec. 3. (a) The board may organize a voluntary regional drug
repository program to collect and redistribute drugs to nonprofit
health clinics.
(b) The board may enter into a voluntary agreement with any
of the following to serve as a regional drug repository:
(1) A pharmacist or pharmacy.
(2) A drug manufacturer.
(3) A wholesale drug distributor.
(4) A hospital licensed under IC 16-21.
(5) A health care facility (as defined in IC 16-18-2-161).
(6) A nonprofit health clinic.
(c) A regional drug repository must hold a controlled substances
registration issued under IC 35-48-3.
(d) A regional drug repository may not receive compensation
for participation in the program.
Sec. 4. Unadulterated drugs, including a medication that has
been returned under IC 25-26-13-25(i), may be donated without a
prescription or drug order to the regional drug repository
program by the following:
(1) A pharmacist or pharmacy.
(2) A drug manufacturer.
(3) A wholesale drug distributor.
(4) A hospital licensed under IC 16-21.
(5) A health care facility (as defined in IC 16-18-2-161).
(6) A hospice.
(7) A practitioner.
Sec. 5. A drug that is given by a regional drug repository to a
nonprofit health clinic may not be:
(1) sold; or
(2) given to a patient except upon a practitioner's prescription
or drug order.
Sec. 6. (a) Except in cases of bad faith or willful misconduct, a
person who donates a drug to the regional drug repository
program and a nonprofit health clinic or practitioner who accepts
or dispenses drugs under the program is not:
(1) subject to disciplinary action;
(2) subject to prosecution in a criminal action; or
(3) liable for damages in a civil action for a patient's injury,
death, or loss;
for matters related to the donation, acceptance, or dispensing of a
drug under the program.
(b) Except in cases of bad faith or willful misconduct, a drug
manufacturer is not:
(1) subject to prosecution in a criminal action; or
(2) liable for damages in a civil action for a patient's injury,
death, or loss;
for the failure to transfer or communicate product or consumer
information or the expiration date of a drug that was made by the
drug manufacturer and donated under the program.
(c) Except in cases of bad faith or willful misconduct, a regional
drug repository is not:
(1) subject to prosecution in a criminal action; or
(2) liable for damages in a civil action for a patient's injury,
death, or loss;
related to the donation, acceptance, or dispensing of a drug under
the program.
Sec. 7. The board may adopt rules under IC 4-22-2 to:
(1) establish standards and procedures for accepting, storing,
and dispensing drugs donated under this chapter;
(2) establish the types of drugs that may be donated; and
(3) administer this chapter.